US soybean suppliers look to Middle East
US SPENDING SIGNIFICANTLY IN GCC TO MITIGATE CHINA’S RETALIATORY TARIFFS
A 90% drop in sales after retaliatory tariffs by China has Washington exploring new markets
The US is looking to the Middle East to help it reduce its surplus of soybeans, a key US agricultural staple hit by the US-China trade war.
“Obviously, soybeans, we have a large supply, a large quantity available, and we’re constantly looking for new markets and new growth opportunities there,” said Ken Isley, Administrator of the Foreign Agricultural Service (FAS) in the United States Department of Agriculture (USDA).
Isley was speaking on the opening day of the Gulfood exhibition in Dubai. He was appointed to the position by US President Donald Trump in March 2018.
“We do see growth opportunities for soybeans going into feed and food sources — feed, of course, for different livestock in the region.”
China is one the largest buyers of US soybeans, but sales dropped over 90 per cent after China slapped retaliatory tariffs on US shipments in July. Soybean futures are still trading down 15 per cent in February compared to last year, despite a thaw in the ongoing US-China trade talks.
Isley said the US is also spending $200 million (Dh735 million) to mitigate the efforts of retaliatory tariffs “from various countries,” under the Agricultural Trade Promotion (ATP) programme.
Expanding markets
“That programme is targeted specifically at expanding existing markets but exploring and growing new markets. Now some of that money, of course, is targeted with our US implementing partners … for projects within the UAE and the GCC region.”
Isley said that multiple projects ■ Gulfood 2019, the annual food and beverage trade exhibition, kicked off yesterday at the Dubai World Trade Centre, bringing together trade missions and exhibitors from 198 countries.
The event, now in its 24th edition, runs till Thursday, and offers a platform for companies to tap into new market opportunities and discuss emerging trends while setting the agenda for the future of food.
Gulfood was inaugurated by Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance. He was joined by Helal Saeed Al Merri, Director General of the Dubai World Trade Centre Authority (DWTCA) and Director General of the Department of Tourism and Commerce Marketing (DTCM). have been awarded but could not give the value of those awards in the Middle East, only adding that there “would be significant money spent here and in other GCC countries.”
The UAE says it has remained largely untouched by any US tariffs on its steel and aluminium exports to the US, and Isley says there has not be any pushback against US agricultural products shipped to the UAE.
He said he was not aware of ■ any threats of retaliatory tariffs on US good coming into the region.
The US pavilion at the show added 20 companies this year over last year, up from 160 in 2018.
“We’re seeing much of that in the packaged food industry. Many of the established markets for these products are in the developed regions — North America, Europe and parts of Asia — but some of the fastest growth is here in this region. We’re now starting to see suppliers replicate that here,” he said.
A report compiled by Euromonitor International said that the Middle East and North Africa region will record the highest growth globally in packaged health and wellness food. Napier said that consumers are now seeking more convenience yet wellness-giving products.
“You’ll see more of the suppliers
You’ll see more of the suppliers here recasting their product line, reformulating their product line, and bringing new and emerging products into the exhibition.”